Real Estate Investing in Newark, New Jersey (07106)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 07106 (Newark, NJ)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 8.7% vacancy may signal weakening demand.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- Elevated poverty: 20.4% poverty rate — can affect rent collection.
- Higher unemployment: 10.1% unemployment — tenant risk signal.
What’s happening in Newark, NJ (07106)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 07106 Newark
The 07106 ZIP covers a section of Newark that demands careful diligence. Prices near $464K look accessible, but the work to make a deal cash flow is real.
The investment case in 07106 is notable only for operators who understand what they are buying. A $464K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Nearby ZIPs in Newark have seen price recovery that 07106 has not matched. Essex County data supports the view that the spread is structural rather than temporary.
The 07106 ZIP's population of 35,999 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that shows the need for careful underwriting.
Distressed ZIPs reward experience. significant returns are possible in 07106, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Newark:
Property Strategy for 07106
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $445,324 | $2,430 | 3.9% | +10.4% | $148,441 |
| 4BR | $475,839 | $2,760 | 4.2% | +9.9% | $118,960 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 07106 Compare?
| Metric | 07106 | Newark | New Jersey |
|---|---|---|---|
| Home Value | $464,331 | $148,249 | $559,826 |
| 5-Year CAGR | 6.6% | 4.2% | 8.4% |
| Avg Rent | $1,976 | $2,128 | - |
| Cap Rate | 3.3% | 3.5% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 07106 (Newark, NJ). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 07106 (Newark, NJ)?
~25 seconds · no account needed · your report is anonymous
Property managers serving Essex County
Manage rentals here? List your business →Associa Community Management Corporation of New Jersey is an HOA property management company serving Northern and Central New Jersey. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $464,331 |
| Monthly Rent | $1,976 |
| Price-to-Rent | 19.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.1% |
| Cap Rate | 3.3% |
| 5-Year IRR | 10.0% |
📈 Home Appreciation
| 1-Year | +2.5% ▲ |
| 3-Year CAGR | +3.8% ▲ |
| 5-Year CAGR | +6.6% ▲ |
| 10-Year CAGR | +9.1% ▲ |
🏠 Rent Trends
| 1-Year | -2.1% ▼ |
| 3-Year CAGR | +5.2% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.3%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 07106
Population: 35,999
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 07106
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
American History High School
Berkeley Terrace Elementary School
Cicely L. Tyson Community Middle/High School
Cleveland Street Elementary School
Clinton Elementary School
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 3,459 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What are home prices like in Newark, NJ?
The median home value in Newark, NJ is roughly $464K. That puts it reasonable relative to the NJ statewide average.
What kind of tenants rent in Newark, NJ?
Newark, NJ offers a predictable renter base at the $1,976/mo rent level. Tenant turnover is reasonable for well-managed properties.
How strong is Newark, NJ for real estate investors?
Newark, NJ rates 3.0/5 for investability. With median values at $464K and rents near $1,976/mo, the market offers reasonable fundamentals for rental investors.
How strong are rents in Newark, NJ?
Investors in Newark, NJ typically see rents near $1,976/mo per month against $464K home values - a solid setup for rental cash flow.
Can I live-in-and-rent in Newark, NJ?
The house hack math a challenging in Newark, NJ. Owner-occupant buyers benefit from the $1,976/mo rents and $464K home values.
You know 07106 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 07106 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 07106 ranks in New York-Newark-Jersey City, NY-NJ-PA
Every ZIP in this metro, ranked. Free.
AI Market Advisor
Ask questions about investing in 07106 (Newark)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 07106 (Newark, NJ).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.